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CITY OF SAN MARCOS, TEXAS <br />SAN MARCOS REGIONAL AIRPORT <br />AIRPORT GROUND LEASE AGREEMENT <br />FOR NON -AERONAUTICAL USE <br />THIS AIRPORT GROUND LEASE AGREEMENT FOR NON -AERONAUTICAL USE <br />("Lease") is made between the City of San Marcos, a municipal corporation of the State of Texas ("Lessor" <br />or "City"), and City of San Marcos Fire Department ("Lessee"). <br />ARTICLE 1: LEASE OF PREMISES; ACCEPTANCE OF EXISTING CONDITIONS; <br />COMPLIANCE WITH REGULATIONS <br />1.01 Airport. Lessor is the owner of the San Marcos Regional Airport (the "Airport"), situated in <br />Caldwell County, Texas, by virtue of deeds from the United States of America. This Lease <br />Agreement between the City of San Marcos as Lessor and the City of San Marcos Fire Department <br />as Lessee is required by the Federal Aviation Administration based on regulations of non - <br />aeronautical activity at the Airport. The development of the Leased Premises contemplated by this <br />Lease Agreement was approved by the voters of the City of San Marcos during a 2017 Bond <br />Election. <br />1.02 Demise. For and in consideration of, and subject to, the terms, conditions and covenants herein, <br />Lessor hereby demises and leases unto Lessee, and Lessee hereby leases from Lessor, the following <br />described real property (hereinafter referred to as the "Leased Premises"), located at the Airport in <br />Caldwell County, Texas: <br />723,096 unimproved square feet as described in Exhibit A attached hereto; <br />1.03 Acceptance. Lessee acknowledges that, subject to Lessor's obligations under paragraph 1.05 <br />below: (i) Lessor makes no representations or warranty regarding the suitability of the Leased <br />Premises for Lessee's intended purposes, or the presence of environmental, geologic, or other site <br />conditions that may affect Lessee's use of the Leased Premises; (ii) Lessee accepts full <br />responsibility for determining the suitability of the Leased Premises for its intended purposes; (iii) <br />Lessee has had the opportunity to inspect and perform tests and investigations of the Leased <br />Premises for its intended purposes; and (iv) Lessee is accepting the Leased Premises in its present <br />condition. <br />1.04 Rules and Regulations; Minimum Standards. Lessee agrees to comply with the (i) San Marcos <br />Regional Airport Rules and Regulations (the "Rules and Regulations"), and (ii) San Marcos <br />Regional Airport Minimum Standards (the "Minimum Standards"). Provided the same do not <br />impair the material rights of Lessee hereunder or adversely affect Lessee's ability to use the Leased <br />Premises for the Authorized Use (as defined below), Lessor has the right to amend and/or restate <br />the Rules and Regulations and/or the Minimum Standards and Lessee shall comply with the same. <br />1.05 Airport Operation. Lessor operates and maintains the Airport and appurtenant facilities (including, <br />without limitation, runways, taxiways, landing areas, entrance roads, driveways and existing <br />parking lots leading to and/or contiguous to the Leased Premises) as a public airport consistent <br />with, at a minimum, current operations and the "sponsor" assurances given by Lessor to the United <br />